Compared to the C-Corporation,the Limited Liability Company Is an Attractive

question 107

Multiple Choice

Compared to the C-corporation,the limited liability company is an attractive form of business ownership because:

• A)Even though it is a little more expensive to form,it has a longer life than the C-corporation.
• B)A limited liability company permits one owner to own all the stock of the company,whereas a C-corporation requires several owners.
• C)Once formed,the limited liability company is a legal form of business ownership,worldwide,whereas the C-corporation must file for corporate status in each nation it elects to do business.
• D)Once formed,the limited liability company does not require the firm to hold annual meetings,and has the option to avoid double taxation.

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Definitions:

Laceration Hazard

A potential risk of cuts or tears on the skin or other parts of the body, typically identified in safety protocols for equipment or environments.

Bill Of Exchange

An instrument in writing, signed by the drawer and addressed to the drawee, ordering the drawee to pay a sum certain in money to the payee named therein (or bearer) at some fixed or determinable future time, or on demand.

Drawer

In the context of banking and finance, the individual or entity that writes and signs a check, thereby instructing the bank to pay the stated amount to another party.

Acceptor

In the context of banking and finance, an entity that accepts a bill of exchange or draft, agreeing to pay the amount to the holder at a specified date.